For a gain or loss to be within the scope of tax on chargeable gains, there must be a chargeable disposal of a chargeable asset by a chargeable person. See C1.307, C1.301 and C1.102 respectively. This article summarises the tax treatment in relation to long funding leases of plant and machinery. For the tax treatment of contracts for hire purchase, see C1.310.
Individuals, trustees and personal representatives are subject to capital gains tax on chargeable gains. Companies are subject to corporation tax on chargeable gains. See C1.102.
For a discussion of the computation of chargeable gains and losses, see C1.105. For the rates of tax that apply to chargeable gains, see C1.107.
Long funding leases of plant and machinery
Since 2006, the tax treatment of those who acquired plant and machinery under a lease (known as 'long funding leases') has been the same as where the acquisition of the plant and machinery was financed by debt. This was primarily to ensure that the person leasing the asset and using it in their trade
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